2006 2007 Quantity 12 Price 51,800 S 800 51.10 Quantity Price S2,800 S500 51.00
ID: 3195146 • Letter: 2
Question
2006 2007 Quantity 12 Price 51,800 S 800 51.10 Quantity Price S2,800 S500 51.00 Cars Oranges 900 950 Nominal GDP for 200 is (Round your response to two decimal places.) Nominal GDP for 2007 is Using the prices for 2008 as the set of common prices, real GDP in 2008 is(Round your response to two decimai piaces.) using the pnces for 2006 as the set of common pnces, real GDP n2007 is S (Round your response to two decimal places ) Using the prices for 2008 as the set of common prices, the GDP deflator for 2006 is(Round your response to two decimai piaces.) Using the prices for 2006 as the set of common prices, the GDP deflator for 2007 is(Raund your response to two decimal piaces.) Using the GDP deflators you calculated above and using the prices from 2006 as your set of common pnces the rate of inflation from 2008 to 2007 is Using the prices for 2007 as the set of common prices, real GDP in 2008 is S (Round your response to two decimal places.) Using the prices for 2007 as the set of common prices, real GDP in 2007 Round your response to two decimal places.) Using the prices for 2007 as the set of common prices, the GDP deflator for 2006 is(Round your response to two decimai places.) Using the prices for 2007 as the set of common prices, the GOP deflator for 2007 is(Round your reaponse to two decimai piaces.) Use the GDP deflators you calculated above the inflation rate from 2006 to 2007 is %. Round your esponse to two decima/places (Round your response to two decimal places.) %. Round your response to two decimal pacesExplanation / Answer
NOMINAL GDP for 2006
= sum of current year price * current year quantity of all goods
= (12* 1800) + (4*800) + (900*1.10)
= 21600 + 3200 + 990
= 25,790
NOMINAL GDP for 2007
= sum of current year price * current year quantity of all goods
= (14* 2800) + (7*500) + (950*1.00)
= 39200 + 3500 + 950
= 43,650
GDP DEFLATOR = (Nominal GDP / Real GDP ) * 100
GDP DEFLATOR for 2006 = 100 beacuse 2006 is the base year.
GDP DEFLATOR for 2007
Firstly we will have to calculate the Real GDP for 2007
Real GDP for 2007
= sum of base year price * current year quantity of all goods
= (14* 1800) + (7*800) + (950*1.10)
= 25200 + 5600 + 1045
= 31,845
GDP DEFLATOR for 2007 = ( 43,650 / 31,845 ) *100 = 137.07
INFLATION
= ((GDP DEFLATOR for yera 2- GDP DEFLATOR for year1 ) / GDP DEFLATOR for year 1) * 100
= ((GDP DEFLATOR for 2007-GDP DEFLATOR for 2006) / GDP DEFLATOR for 2006) * 100
= (( 137.07 - 100) / 100) *100 = 37.07
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.